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Edelman Intelligence / general electric GE Global Innovation Barometer 2018 TURKEY Report February 2018 1
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Page 1: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

GE Global Innovation Barometer 2018

TURKEY Report

February 2018

1

Page 2: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

ONE:Methodology

TWO:Global Summary From Chaos to Confidence

THREE:Turkey Executive Summary

FOUR:Narratives in Detail

Contents

2

Page 3: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Methodology

3

Page 4: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

This year’s method and scope

4

Innovation Business Executives

2,090 Business Executives in total across 20 markets

Each respondent’s line of work involves taking part in their company’s innovation

process/policies

Responsible for making decisions related to innovation, product development or

research and development (R&D) activities in their company

In Turkey, we talked to 80 Innovation Business Executives

All answered a 30 minute interview

Fieldwork dates:12th of October – 1st of December 2017

Page 5: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

From Chaos to Confidence:Emerging Players,

Emerging Technologies, Emerging Challenges

5

Global Summary

Page 6: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

2018 Key FindingsFrom Chaos to Confidence: Emerging Players, Emerging Technologies, Emerging Challenges

Emerging Confidence: While the United States (-8) and Germany (-7) see a drop in championship status from 2014, Japan (+8) and China (+4) take more share. Asia (34+ since 2014) and emerging markets are gaining confidence, viewing themselves as more innovative than they did in 2014.

New Actors Driving Innovation: Multinationals are now leading the innovation pack (+4 since 2014), while SMEs (-11 since 2014) and entrepreneurs (-2 since 2014) seem to have lost some of their innovation drive. In the Middle East and Asia especially, the private sector is becoming a more important driver of innovation while there is a decrease in governments driving innovation.

Working in a Protectionist World: Global executives want the best of both worlds: on one hand they want the benefits of protectionist policies on domestic businesses and jobs, and on the other hand, they want the benefits of globalization and open markets. A small majority of global executives (55%) believe protectionist policies benefit businesses within their country and 73% believe it is good for the workforce. However, 68% globally believe their government cannot keep up with the pace of change and 22% (of those that prefer protectionism) see multinationals as the drivers of innovation.

1

2

3

Page 7: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact (63%), increase creativity (91%) and get goods to market faster (89%). At the same time, 53% believe 3D printing has yet to reach its full potential, requiring more education and reassurance.

Maximizing the Return on Innovation: Globally, 40% of innovations are having a positive impact on the bottom line. What’s the secret to success for these “innovation achievers”? They’re taking a more measured approach. Businesses are waiting to perfect and test their innovation before launch rather than getting to market quickly—a 10-point jump since 2016 (now 65%). Innovation achievers also are more willing to wait for long-term ROI for breakthrough innovation (84%) and have a clear structure and process in place to measure that return (50% vs. 43%). Hype vs Reality of Impact: Hype around certain technologies does not always equate to transformative impact. In fact, global executives believe that many under-hyped technologies will have a transformative impact, including energy grids (74% say it will bring transformative change to their country), virtual healthcare (68%) and smart cities (71%).

4

5

6

Future of Work: The workforce is considered the most crucial element to innovation success in most markets, yet skills gaps continue to be a top concern among businesses. Nearly 3 in 4 (74%) global executives believe a lack of skills is an issue facing their industry—a challenge that has increased over time (64% say a lack of talent/inadequate skills is a key challenge today, up from 56% in 2014).

7

2018 Key FindingsFrom Chaos to Confidence: Emerging Players, Emerging Technologies, Emerging Challenges

More Challenging Environment: The challenges confronting innovative businesses are tough – and getting tougher – both externally and internally. There is a 13-point increase (now 67%) since 2014 in lack of sufficient funding, a 6-point increase (now 65%) in the inability to scale innovations to a wider market, an 8-point increase (now 64%) in lack of adequate talent/ skillsets, and a 14-point increase (now 64%) in the inability of businesses to take risks. Emerging markets such as Poland, South Africa, Malaysia and Saudi Arabia are experiencing the greatest increase in challenges.

8

Page 8: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

Turkey Executive Summary

8

Page 9: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Key findings

Business executives in Turkey are more confident when it comes to their innovation conduciveness, with 44% stating that their country has an innovation conducive environment. This is a 23 percentage point increase since 2014 (21%), and an increase of 13 percentage points since 2016 (31%).

Multinationals continue to take the lead in driving innovation, which confirms the global narrative; 39% of business executives say multinationals drive innovation compared to the global average of 23%. Multinational companies have also made substantial gains, improving by 22 percentage points since 2014, when they were at 17%.

More than one in two business executives (56%) agree with the idea that protectionism is beneficial for businesses, while 44% of business executives think that protectionist policies would have a negative impact on business innovation in Turkey.

Among Turkish business executives, there is a great deal of excitement around the potential of 3D printing, with more than three in four stating that it will have a positive impact on businesses (79%), over-indexing against the global average of 63%.

For Turkish business executives, the lack of talent / inadequate skillsets is not perceived as a challenge as strongly as it is globally. Compared to the global average of 64%, only 33% of Turkish business executives say this is a challenge.

9

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10

- Turkey confirms the global narrative, with 39% saying that multinationals are driving innovation, which over-indexes against the global average of 23%. Multinational companies have made substantial gains, improving by 22 percentage points from 2014 (17%).

- Government and public authorities at a national level have seen a decline year over year. They were the leading driver of innovation amongst 24% of business executives in 2014, as well as 31% in 2016. Yet, for GE GIB 2018, just over one in ten Turkish business executives see the government and public authorities as a driver of innovation (11%).

New Actors Driving Innovation:

Multinationals are now leading the innovation pack (+4 since 2014), while small and medium-sized enterprises or SMEs (-11 since 2014) and entrepreneurs (-2 since 2014) seem to have lost some of their innovation drive. In the Middle East and Asia especially, the private sector is becoming a more important driver of innovation while there is a decrease in governments driving innovation.

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11

- Turkey is not seen as a global innovation champion. Since the GE GIB 2016, the country is again viewed by only 1% of business executives across the world as the champion.

- Business executives in Turkey are more confident when it comes to their innovation conduciveness, with 44% stating that their country has an innovation conducive environment. This is an increase of 23 percentage points since 2014 (21%), and an increase of 13 percentage points since 2016 (31%).

Emerging Confidence:

While the United States (-8) and Germany (-7) see a drop in championship status from 2014, Japan (+8) and China (+4) take more share. Asia (34+ since 2014) and emerging markets are gaining confidence, viewing themselves as more innovative than they did in 2014.

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12

- In Turkey, more than one in two business executives (56%) agree with the idea that protectionism is beneficial for businesses; while 44% of business executives think that protectionist policies would have a negative impact on businesses in Turkey.

- When asked about the reasons why protectionist policies would have a negative impact on businesses, 63% of Turkish business executives say it would make the country less appealing to foreign investment, which over-indexes against the global average of 45%.

- Turkey supports the global narrative, with 68% of business executives believing their government cannot keep up with the pace of innovation, the same percentage as the global average.

Working in a Protectionist World:

Global executives want the best of both worlds: on one hand they want the benefits of protectionist policies on domestic businesses and jobs, and on the other hand, they want the benefits of globalization and open markets. A small majority of global executives (55%) believe protectionist policies benefit businesses within their country and 73% believe it is good for the workforce. However, 68% globally believe their government cannot keep up with the pace of change and 22% (of those that prefer protectionism) see multinationals as the drivers of innovation.

Page 13: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

13

- Among Turkish business executives, there is a great deal of excitement around the potential of 3D printing, with more than three in four stating that it will have a positive impact on businesses (79%), which over-indexes against the global average of 63%.

- 3D printing is viewed positively by Turkish business executives, with 96% of business executives saying that 3D printing would reduce the cost of goods, making them more affordable, which over indexes against the global average of 83%.

- With 89%, Turkish business executives also believe that those businesses who invest in 3D printing would leave other businesses behind, over-indexing against the global average of 81%.

The Potential of Additive:

Global executives are excited about the potential of 3D printing, saying it will have a positive impact (63%), increase creativity (91%) and get goods to market faster (89%). At the same time, 53% believe 3D printing has yet to reach its full potential, requiring more education and reassurance.

Page 14: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

14

Maximizing the Return on Innovation:

Globally, 40% of innovations are having a positive impact on the bottom line. What’s the secret to success for these “innovation achievers”? They’re taking a more measured approach. Businesses are waiting to perfect and test their innovation before launch rather than getting to market quickly—a 10-point jump since 2016 (now 65%). Innovation achievers also are more willing to wait for long-term ROI for breakthrough innovation (84%) and have a clear structure and process in place to measure that return (50% vs. 43%).

- Turkey supports the global narrative, with business executives stating a mean score of 39% of their innovations being a success that positively impacted their bottom line and improved their position in the market, compared to 40% globally.

- Compared to the global results, Turkish business executives over-index on the choice to ‘wait to perfect and test the innovation before launch, in order to make sure the customer is completely satisfied from the start’, (78% compared to the global average of 65%). This is also a 10 percentage point increase from 2016 (68%).

- Turkish business executives are more likely to ‘create innovations outside of the current ‘innovation hype’ and trends, in order to disrupt the market’, which over-indexes against the global average (66% in Turkey, compared to 41% globally).

- However, when it comes to measuring the return on investment of innovation, Turkish business executives under-index against the global average in having measurement frameworks in place to keep investors happy (29% compared to 39% globally).

Page 15: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

15

- The average hype of all innovations in Turkey is higher than the global average. All but two innovations over-index against global hype. The two that do not over-index compared to the global average are (Big Data and analytics (74%), and IoT (73%).

- Turkish business executives feel Smart Cities are hyped in their country, these innovations over-index against the global average by 27 percentage points (89% compared to 62% globally), as well as Artificial Intelligence, (88% compared to 71% globally).

- When it comes to the transformative impact, Nanotechnology is the only hype which over-indexes against the global average (81% compared to 72% globally), with Big Data and Analytics (63%) and IoT (63%) ranking last amongst all transformative impact innovations.

Hype vs. Reality of Impact:

Hype around certain technologies does not always equate to transformative impact. In fact, global executives believe that many under-hyped technologies will have a transformative impact, including energy grids (74% say it will bring transformative change to their country), virtual healthcare (68%) and smart cities (71%).

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16

- More than six in ten business executives in Turkey say there is a skills gap in their industry (64%), this is however 10 percentage points lower than the global average of 74%.

- Similarly, Turkish business executives are less likely to state a lack of talent / inadequate skillsets as a key challenge, with one in three business executives affirming this (33%), which under-indexes against the global average by 31 percentage points (64%).

Future of Work:

The workforce is considered the most crucial element to innovation success in most markets, yet skills gaps continue to be a top concern among businesses. Nearly 3 in 4 (74%) global executives believe a lack of skills is an issue facing their industry—a challenge that has increased over time (64% say a lack of talent/inadequate skills is a key challenge today, up from 56% in 2014).

Page 17: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

17

More Challenging Environment:

The challenges confronting innovative businesses are tough –and getting tougher – both externally and internally. There is a 13-point increase (now 67%) since 2014 in lack of sufficient funding, a 6-point increase (now 65%) in the inability to scale innovations to a wider market, an 8-point increase (now 64%) in lack of adequate talent/ skillsets, and a 14-point increase (now 64%) in the inability of businesses to take risks. Emerging markets such as Poland, South Africa, Malaysia and Saudi Arabia are experiencing the greatest increase in challenges.

- In the current GE GIB, Turkey under-indexes for every single challenge statement compared to the global average, with no issue being perceived as a challenge by a majority.

- The top two challenges reported by Turkish business executives are the lack of sufficient investment and financial support (48% compared to 67% globally) and the incapacity of businesses to take risk (48% compared to 64% globally).

- The biggest disconnect between the global average and business executives in Turkey is the challenge concerning the overwhelming amount of information. Compared to the global average of 57%, Turkey scores 34 percentage points lower, with only 23%of business executives perceiving it as a challenge.

Page 18: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Narratives in Detail

18

Page 19: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

19

Section One: Emerging Players• New Actors Driving Innovation• Emerging Confidence• Working in a Protectionist World

Section Two: Emerging Technologies• The Potential of Additive• Maximizing the Return on Innovation (ROI)• Hype vs. Reality of Impact

Section Three: Emerging Challenges • Future of Work• More Challenging Environment

Contents

Page 20: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / © 2017 20

section one:

Emerging Players

Page 21: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

New Actors Driving Innovation

21

Executive Summary

• Multinationals are now leading the innovation pack (+4 since 2014), while SMEs (-11 since 2014) and entrepreneurs (-2 since 2014) seem to have lost some of their innovation drive. In the Middle East and Asia especially, the private sector is becoming a more important driver of innovation while there is a decrease in governments driving innovation.

Page 22: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

22%20%

19%

14%

11%9%

3%1%

11%

18%

23%

18%

12%

9%

2%

5%

Small and medium companies (10 to 250

employees)

Individual entrepreneurs and start-ups

Multinational companies investing in your country

Large enterprises (more than 250 employees)

headquartered in your country

Universities and research labs

Government and public authorities at national

level

Public authorities at local level (region / city)

State owned enterprises in your country (SoE)

2014 2018

Q3. Who do you think is driving innovation the most today in your country? Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

Who is the main driver for innovation in your country?(Historical tracking data at a global level)

Multinational companies are indeed back in the driving seat for innovation, while SMEs seem to lose some of their innovation drive.

22

Page 23: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

24%

20%17% 17%

14%

6%

2%0%

11%

5%

39%

13%

20%

3%5% 4%

Government and public authorities at national

level

Universities and research labs

Multinational companies investing in your country

Individual entrepreneurs and start-ups

Large enterprises (more than 250 employees)

headquartered in your country

Small and medium companies (10 to 250

employees)

Public authorities at local level (region / city)

State owned enterprises in your country (SoE)

2014 2018

Q3. Who do you think is driving innovation the most today in your country? Base business executives in Turkey 2014: 100, Turkey business executives 2018: 80 [Full base sizes listed in the appendix]

Who is the main driver for innovation in your country?(Historical tracking data at a global level)

In Turkey, multinationals are driving innovation, while large enterprises are also gaining momentum since 2014.

23

Page 24: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Q3. Who do you think is driving innovation the most today in your country? Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

Multinationals are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by largest increase from 2014 to 2018

Multinationals’ growing reputation as the driver of innovation is seen across the majority of countries.

17% 16%

23%20%

8%

30%

25%

7% 7%

22%

12%

27%

16% 17% 16%

11%

33% 33%

19%

26%

39%

29% 30%27%

15%

36%

30%

12% 12%

26%

14%

29%

17%19% 20%

13%

32% 31%

13%

21%

2014 2018

Emerging economies, notably Turkey and South Africa have seen the largest rise in business executives believing multinationals are the main driver of innovation in their country.

24

Increase Decrease

Page 25: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Q3. Who do you think is driving innovation the most today in your country? Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

SMEs are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by largest decrease from 2014 to 2018

SMEs are losing their reputation as a driver of innovation in developed economies – particularly in Europe.

18%

9%

27%

10%

4%6% 7%

14%

22%

14%

20%

24%

30%

24%

30%

37%

26%

35% 36%

49%

23%

10%

29%

8%

1% 3% 1%

6%

13%

5%

10%12%

15%

8%

13%

20%

7%

11%9%

18%

2014 2018

25

Increase Decrease

Page 26: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

In emerging economies, governments are now not seen to be driving innovation as much as they were in 2014.

Decrease

21%

33%

23% 24% 25%

13%

26%

12% 11%9%

Malaysia UAE China Turkey Saudi Arabia

2014 2018

Q3. Who do you think is driving innovation the most today in your country? Base Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

-7

-8 -11 -13 -16

26

Governments are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by 2014 – 2018 growth

Page 27: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

In parallel, in some economies where government traditionally dominated innovation, such as Turkey and South Africa, business executives now see increasing value driven by the private sector.

Increase Q3. Who do you think is driving innovation the most today in your country? Base Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

Multinationals are the main driver for innovation in your country(Historical tracking data at a global level)Ranked by 2014 – 2018 growth

17% 16%

23%20%

8%

30%

25%

39%

29% 30%27%

15%

36%

30%

Turkey South Africa Indonesia Poland France Nigeria Mexico

2014 2018+22

+13 +7 +7

+7

+6 +5

27

Page 28: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / © 2017

Emerging Confidence

28

Executive Summary

• While the United States (-8) and Germany (-7) see a drop in championship status from 2014, Japan (+8) and China (+4) take more share. Asia (34+ since 2014) and emerging markets are gaining confidence, viewing themselves as more innovative than they did in 2014.

Page 29: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Countries that traditionally dominated global innovation leadership, notably the U.S. and Germany, are stalling, ceding ground to emerging and developed Asia. Emerging markets catch up aggressively, and China and Japan have become an alternative hotspot for global Innovation—confirming that innovation is disrupting the global competitive landscape at the regional as well as industry level. Previous GE Global Innovation Barometers had already highlighted stronger innovation momentum in emerging markets.

What is the country that you consider to be the leading innovation champion?Ranked by 2018 data

38%

12% 13%15%

1%4%

3%1%

3%1%

36%

13%10%

16%

1%4% 3%

0%2% 1%

33%

17%

10%10%

2%4% 4%

1%3% 3%

28%

21%

14%

9%

3% 3% 3% 2% 2% 2%

USA Japan China Germany Sweden South Korea UK Canada India UAE

2013 2014 2016 2018

Q1. What is THE country that you consider to be the leading innovation champion? Base business executives 2013: 3,100, business executives 2014: 3,309, business executives 2016: 2,748, business executives 2018: 2,090, [Full base sizes listed in the appendix] 29

1% in 20161% in 2018

Page 30: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

This shift in innovation is also felt internally, with many countries recognizing their own market as being a more innovation conducive environment than it was in 2014.

30

For your own market, how far would you say that you have developed an Innovation conducive environment?Percentage that feel they have a strong innovation conducive environment (top 3 box)

Q2. For each of the following markets, how far would you say that they have developed an Innovation conducive environment? [Top 3 Box 8-10] Base business executives 2014: 3,309, business executives 2018: 2,090 [Full base sizes listed in the appendix]

24% 28%

14%7%

32%23%

18%7%

21%

73%67%

43%35%

58%49%

44%

30%

44%

China India Brazil Malaysia Canada Mexico Indonesia Poland Turkey

2014 2018

40% 40% 36%30%

11%

72%

53%

20%26%

7%

41%

77%

61% 61% 56%48%

28%

85%

59%

24% 27%

8%

38%

65%

UAE UK France Global Total Saudi Arabia USA Sweden South Africa South Korea Nigeria Japan Germany

Page 31: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Asian markets have seen the biggest increase in the way they evaluate how innovation conducive their country is.

For your own market, how far would you say that you have developed as an innovation conducive environment?Percentage that have a strong innovation conducive environment (top 3 box)

Q2. For each of the following markets, how far would you say that they have developed as an Innovation conducive environment? [Top 3 Box 8-10] Base business executives 2014: 3,309, business executives 2016: 2,748, business executives 2018: 2,090 [Full base sizes listed in the appendix]

49%

39%

29% 28% 26%

China India Brazil Malaysia Indonesia

Top 5 increases 2014 to 2018

On average Asian countries see a 34% increase in how they evaluate

their ability to foster innovation

31

Page 32: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

The innovation influence has become multipolar; China and Japan have become aspirational.

32

Asia

LATAMAfrica

Q1. What is THE country that you consider to be the leading innovation champion? Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150 Base business executives: 2,090

Africa to ChinaA relationship of trade and investment41% of business leaders in Africa see China as the innovation champion. Chinese companies are investing in Africa and China is now the country’s biggest economic partner.

Europe (Inward Looking)

North America(Inward Looking)

LATAM to JapanA relationship of trade and investment33% of business executives believe Japan is the innovation champion as Japan invests heavily in the region.

Asia & the U.S. An aspirational relationshipAsia looks to the U.S., with 34% of business executives viewing them as the innovation champion (64% in China).

Europe a self-serving relationship Europe sees countries within the continent as being key innovation champions (Germany 12%, Sweden 10%, U.K. 6%).However 22% of business executives in Europe look to the U.S. as champions and 19% of executives look to Japan.

The U.S. a confident viewThe U.S. believes the U.S. is the innovation champion (61%).

Turkey to the US: Turkish business executives are more likely to look towards the US, with 31% choosing them as the innovation champion.

Page 33: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Working in a Protectionist World

33

Executive Summary

• Global executives want the best of both worlds: on one hand they want the benefits of protectionist policies on domestic businesses and jobs, and on the other hand, they want the benefits of globalization and open markets.

• A small majority of global executives (55%) believe protectionist policies benefit businesses within their country and 73% believe it is good for the workforce. However, 68% globally believe their government cannot keep up with the pace of change and 22% (of those that prefer protectionism) see multinationals as the drivers of innovation.

Page 34: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

A slightly more defensive approach to innovating (defending against international competition) is reflected in the contrasted views that global business leaders have of protectionist policies. A small majority of them depict protectionism as potentially conducive for innovation success.

55% of business executives think that if their government had protectionist policies towards innovation it would benefit the business sector.

55%45%

Pro-protectionism

Anti-protectionism

Q6. There have recently been discussions about the potential impact of protectionist politics and policy on innovation and businesses. Out of the statements below related to protectionism, which do you agree with the most? Base business executives: 2,090, Business executive in Turkey: 80

If the government had a political protectionist stance on innovation in my country it would be beneficial to businesses.

71%65% 63% 63% 63% 61% 60% 58% 57% 56% 56% 55% 53% 53% 51% 51% 51% 49% 47% 43% 39%

Only 4 countries had a majority that felt a protectionist stance to

innovation would not be beneficial to business.

34

44%56%

Page 35: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

The majority of business executives agree that regulations around privacy and data are stifling innovation.

69%

29%

2%

Regulations around privacy and data protection are preventing businesses from adopting more

radical/transformative innovations

Q5. How much do you agree or disagree with the following statements? Regulations around privacy and data protection are preventing businesses from adopting more radical / transformative innovations. Base business executives: 2,090, Business executives in Turkey; 80, Pro-protectionism: 1,153, Anti-protectionism: 937, Protectionism base sizes too small to report on in Turkey

Agree

Disagree

Pro-protectionism

Anti-protectionism

70%

28%2%

68%30%

2%

Agree

Disagree

Don’t know

Don’t know

Agree

Disagree

35

34%

60%

6%

Page 36: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

And business leaders feel regulations around privacy and data protection are stifling innovation more so than two years ago.

49%

55%

65%

60% 61%63%

61%65%

55%

66%

74%

61%

69%65%

73%76%

79%

85%

69%

79%

70%

60%

80%

73% 73%75%

67%

74%

61%

69%

75% 75%

60%

70%66%

69%71% 72%

77%

56%

65%

2016 2018

Q5. How much do you agree or disagree with the following statements? Base business executives 2016: 2,748, business executives 2017: 2,090 [Full base sizes listed in the appendix]

Regulations around privacy and data protection are preventing businesses from adopting more radical / transformative innovationsNET: Agree

2016

dat

a no

t ava

ilabl

e

Increase Decrease

Page 37: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Private sector is seen as driving innovation as governments can’t cope with the pace of innovation.

37

68%

31%

2%

In my country, the government is not able to regulate innovation as the system cannot

keep up with the pace of innovation

Q5.4 How much do you agree or disagree with the following statements? In my country the government is not able to regulate innovation as the system cannot keep up with the pace of innovation. Base business executives: 2,090, Business executives in Turkey: 80, Pro-protectionism: 1,153, Anti-protectionism: 937 // Protectionism base sizes too small to report on in Turkey

Agree

Disagree

Don’t know

Pro-protectionism

Anti-protectionism

64%34%

2%

72%

26%2%

Agree

Disagree

Don’t know

Don’t know

Agree Disagree

30%

68%

2%

Page 38: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

The majority of business executives across 20 markets feel that the government cannot keep up with the pace of innovation.

Q5. How much do you agree or disagree with the following statements? Q5_D. In my country the government is not able to regulate innovation as the system cannot keep up with the pace of innovation. Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

91%86%

80% 78% 77% 76% 74% 71% 71%68% 68% 67% 66% 66% 65%

59%55% 55% 55%

51%

41%

Brazil Mexico South Korea

Poland Japan UK Nigeria France South Africa

Global Average

Turkey Germany Sweden USA India Indonesia China Malaysia Saudi Arabia

Canada UAE

In my country, the government is not able to regulate innovation as the system cannot keep up with the pace of innovation,

38

Page 39: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / © 2017 39

section two:

Emerging Technologies

Page 40: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

The Potential of Additive

40

Executive Summary: The Potential of Additive

• There is excitement from global executives around the potential of 3D printing with 63% believing it will have a positive impact (91% saying it increases creativity and 89% saying it lets goods get to market faster), but more education and reassurance is needed.

• While there is real excitement, 53% believe 3D printing has yet to realize its full potential.

Page 41: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

The majority of business executives believe 3D printing’s impact will be mostly positive for businesses in their country.

41Q13. We would now like to ask you about 3D (3-dimensional) printing and the impact you think this might have on businesses in your country. Do you think 3D (3-dimensional) printing is beneficial or could have a negative impact on businesses? Base Business Executives: 2,090, Business Executives in Turkey: 80

63%

31%

4%3%I think 3D printing will have a positive impact on businesses in my country

I think 3D printing will have both a positive and negative impact on businesses in my country

I think 3D printing will have a negative impact on businesses in my country

Don't know

79%

16%

1%4%

Page 42: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Benefits include increased creativity, speed to market, lower costs, competitive advantage and improved CO2 footprint.

42Q14. Imagine 3D printing has become a reality in your country with business and industries adopting it. How far do you agree or disagree with the following statements? Base Business Executives: 2,090, Business Executives in Turkey: 80

=80%

81%

83%

89%

91%

Beneficial for the environment and reduce CO2 in manufacturing

Businesses that invest in 3D printing will leave other businesses behind

Reduce the costs of goods making them more affordable

Enable goods to get to market faster

Allow businesses to be more creative in the products and goods they can create

93%

94%

96%

89%

80%

Page 43: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

South Africa (73%), Sweden (70%)

However, the benefits of 3D printing vary at a country level.

43

Reduce the costs of goods making them more affordable

(83%)

Turkey (96%), Brazil (95%), India (90%)

Beneficial for the environment and reduce CO2 in

manufacturing (80%)

Indonesia (95%), China (93%), Malaysia (93%), Brazil (89%), India (89%)

Germany (68%), South Korea (67%), Japan

(66%)

Businesses that invest in 3D printing will leave other

businesses behind (81%)

Saudi Arabia (94%), China (91%), Malaysia (89%), Turkey (89%)

Germany (72%), Sweden (71%), Indonesia (71%), Canada (69%)

Q14. Imagine 3D printing has become a reality in your country with business and industries adopting it. How far do you agree or disagree with the following statements? [Net: Agree] Base business executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

Page 44: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Only 4 in 10 business executives are very familiar with 3D printing.

44Q11. Are you familiar with 3D (3-dimensional) printing and what it is? Base Business Executives: 2,090

41%Are very familiar with 3D printing

Yes, I am very familiar with 3D printing (41%)

Yes, but I am only somewhat familiar

with 3D printing (52%)

No, I am not familiar with 3D printing (6%)

Don’t know (1%)

With only 4 in 10 business executives being very familiar with 3D printing, there is work to be done to encourage the majority of business executives to become more familiar and therefore adopt 3D printing.

1% 0%

39%60%

Page 45: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

However, a majority of business executives believe 3D printing has yet to realize its full potential.

45Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country. Base Business Executives: 2,090, Business Executives in Turkey: 80

5%14%

3D printing has already had an

impact on businesses

21%

3D printing is talked about, but isn't a

reality yet

3D printing isn't being talked about

27% 32%

3D printing is starting to become a reality but

won't impact businesses for several

years

3D printing has become a realitythat is impacting

businesses

53% say 3D printing hasn’t reached its full potential yet

11% 30% 38% 16% 5%

54%

Page 46: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Outside of larger countries with strong manufacturing industries, most do not believe 3D printing has made an impact yet in their country.

69%

68%

66%

61%

60%

58%

57%

55%

54%

54%

53%

52%

52%

50%

50%

49%

46%

45%

44%

40%

31%

27%

29% 33

%

34%

31%

31%

41%

34% 41

%

37% 41

% 44%

42% 46

%

34%

48%

48% 55

%

48% 53

% 61%

South Africa

South Korea

Poland Indonesia Saudi Arabia

Canada Brazil Japan Turkey UK Global Total

Germany France Malaysia Nigeria Mexico UAE China Sweden USA India

Being talked about Having an impact

Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country? Base Business Executives: 2,090, Brazil: 150, Canada: 100, China: 150, France: 100, Germany: 100, India: 150, Indonesia: 80, Japan: 100, Malaysia: 80, Mexico: 100, Nigeria: 80, Poland: 80, Saudi Arabia: 80, South Africa: 100, South Korea: 100, Sweden: 80, Turkey: 80, UAE: 80, UK: 150, USA: 150

How mature would you say the 3D (3-dimensional) printing industry is in your country?

46

Page 47: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Globally, the high-tech /IT and manufacturing sectors are most likely to see the impact of 3D printing.

47

52%

43% 43% 42% 41% 40% 40% 39%36% 35% 34%

High-tech / IT Manufacturing (Other)

Fast Moving Consumer

Goods

Electronics Total Industrial Products

Energy related Health related Professional services / Business services

Telecoms / Internet

Automotive / transport /

logistics

3D Printing is having an impact in my country

Sectors above average Sectors below average

Q12. How mature would you say the 3D (3-dimensional) printing industry is in your country. Base Business Executives: 2,090

Page 48: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

Maximizing the Return on Innovation

48

Executive Summary

• Globally, 40% of innovations are having a positive impact on the bottom line. What’s the secret to success for these “innovation achievers”? They’re taking a more measured approach.

• Businesses are waiting to perfect and test their innovation before launch rather than getting to market quickly—a 10-point jump since 2016 (now 65%). Innovation achievers also are more willing to wait for long-term ROI for breakthrough innovation (84%) and have a clear structure and process in place to measure that return (50% vs. 43%).

Page 49: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

We measured a decrease in the appetite for bullish risk taking.

Q23. What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? (MEAN SCORE –including 0) Base business executives 2018: 2,090, business executives in Turkey 2018: 80

40%

25%

20%

15%60% of innovations over the last five years have not resulted in a positive impact on the bottom line (Mean Score)

A success that positively impacted the bottom line and improved our position in the market

A success that improved our position in the market but did not positively impact our bottom line

A failure that provided useful learnings for future innovations

A failure that did not provide any useful learnings for future innovations

Businesses are placing further emphasis on protecting their bottom line and maximizing the “Return on Innovation” (ROI).

49

39%

61%24%

21%

16%

Page 50: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Already challenged in their ability to disrupt themselves and keep up with the innovation race, business executives re-emphasize the basic and fundamental recipes for success.

Know how key digitalization is to innovation success

Focus on measurement

Think about long-term strategies

Be more cautiousin their approach to innovation

Business executives who say 51-100% of

their company’s innovations have

positively impacted their bottom line over

the last 5 years are more likely to…

Businesses are choosing their battles, with an emphasis on digital transformation; focusing on a properly measured ROI and being more measured in their go-to-market strategy.

50

Page 51: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Innovation achievers are using data effectively and integrating digital capabilities into the business model.

They know how key digitalization is to innovation

success

78% 78% 77%

37%

88% 86% 84%

54%

To harness and use data in effective ways to make informed business decisions (% perform

well)

To have a data security program in place to mitigate against any risks of losing data, data

breaches or being hacked (% perform well)

To put digital capability at the core of their business model (% perform well)

Digitalization has made it much easier and efficient for us to measure our return on

investment (% agree)

Non-Achievers Achievers

Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? Base business executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Table Q17 How does your company currently perform against these success criteria? Q22 - Which of the below statements represent your attitudes to measuring the return on investment of innovation at your company? Base business executives 2018: 2,090 // Innovation Achievers and Non-Achievers too small to report on at a country level

51

Page 52: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Achievers are more likely to focus on demonstrating the value to investors, clients and users, and measure the successes of their innovations.

They know how key measurement is to innovation

success

80%

40%35%

88%

46%41%

To demonstrate the value of their innovations to clients and users (% perform well)

We have to measure the impact of innovation on business performance to get further investment and

funding (% agree)

We have measurement frameworks in place to keep our investors happy (% agree)

Non-Achievers Achievers

Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? Base business executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Q17 How does your company currently perform against these success criteria? Q22 - Which of the below statements represent your attitudes to measuring the return on investment of innovation at your company? Base business executives 2018: 2,090 // Innovation Achievers and Non-Achievers too small to report on at a country level

52

Page 53: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Achievers are more cautious and measured in their approach to innovation.

They know how key being cautious is to innovation

success

63%58%

74% 72%

To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation efforts (% agree)

To wait to perfect and test the innovation before launch, in order to make sure the customer is completely satisfied from the start (% agree)

Non-Achievers Achievers

Q23 – Mean (Including Zero) Summary - What percentage of your company’s innovations over the past 5 years do you think have fallen into the following categories? Base business executives 2018: 2,090. Base 0-25% 693, 26-49% 688, 50-100% 709. Q16. On a scale from 1 to 10, how crucial do you think the following elements are for a company to be able to innovate successfully? Q24A - Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Base business executives 2018: 2,090c // Innovation Achievers and Non-Achievers too small to report on at a country level

When innovating, it is best… When innovating, it is best…

53

Page 54: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

With decreased emphasis on speed and more emphasis on protecting their core business, executives are undergoing a reality check.

54

Q24. Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives 2018 2,090

When innovating, it is best...(19 markets no UK)

65%

35%

69%

31%

To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation efforts

To bring innovative products and/or services to market as fast as possible without worrying about the short-term impact it can have on the core business

2016 2018 2016 2018

-4

+4

Page 55: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Turkey mirrors the global narrative and sees a positive shift in business executives protecting the core business from 2014.

55

Q24. Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives in Turkey 2018: 80

When innovating, it is best...(19 markets no UK)

57%43%

66%

34%

To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation efforts

To bring innovative products and/or services to market as fast as possible without worrying about the short-term impact it can have on the core business

2016 2018 2016 2018

+9

-9

Page 56: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

And this reality check is being felt in the majority of countries –notably in China and Germany among others.

Q24. For each of the following markets, how far would you say that they have developed an Innovation conducive environment? [Top 3 Box 8-10] Base business executives 2016: 2,748, business executives 2018: 2,090 [Full base sizes listed in the appendix]

67%

56%64%

52%

62%66%

57%65%

72%77% 76%

65% 63% 61%72%

76%

59%65% 65% 63%

85%

72%78%

64%72% 75%

66% 69%

89%80% 79%

68% 66%60%

70% 73%

55% 58% 55%49%

67%

2016 2018

When innovating, it is best...To protect the core business as much as possible, so it continues to generate the profitability needed to support Research & Innovation effortsRanked by 2016 to 2018 difference

Increase Decrease

2016

dat

a no

t av

aila

ble

56

Page 57: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

In 2018, fully testing new products and solutions before bringing them to market emerges as a preferred strategy, rather than charging ahead with minimum viable products.

Q24.Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which you believe is the most critical. [Top 3 Box 8 - 10] Base business executives 2016: 2,748, business executives 2018 2,090

When innovating, it is best...(19 markets no UK)

45%55%

35%

65%To get to market as quickly as possible to keep an edge on competition, even if this means having an imperfect product or service and improving it along the way

To wait to perfect and test the innovation before launch, in order to make sure the customer is completely satisfied from the start

2016 2018 2016 2018

-10

+10

57

Page 58: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

At the same time, Turkey continues to favor a more cautious approach to innovation.

Q24.Now we are going to present different views on the ideal innovation process. For each you will be shown two options. We would like you to pick the one you feel is the truest or the most relevant in driving successful innovation. Sometimes you may feel your opinion sits in the middle, but please try to select the one which you believe is the most critical. [Top 3 Box 8 - 10] Base business executives in Turkey 2016: 100, business executives in Turkey 2018: 80

When innovating, it is best...(19 markets no UK)

32%

68%

22%

78%

To get to market as quickly as possible to keep an edge on competition, even if this means having an imperfect product or service and improving it along the way

To wait to perfect and test the innovation before launch, in order to make sure the customer is completely satisfied from the start

2016 2018 2016 2018

-10

58

+10

Page 59: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

Hype vs. Reality of Impact

59

Executive Summary

• Hype around certain technologies does not always equate to transformative impact. In fact, global executives believe that many under-hyped technologies will have a transformative impact, including energy grids (74% say it will bring transformative change to their country), virtual healthcare (68%) and smart cities (71%).

Page 60: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

The latest wave of innovation hype is comprehensive, spanning a number of disruptive forces, from Artificial Intelligence (AI) to robotics to advanced manufacturing.

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090

71%70%

69%68%

67%66%

65% 64%

62% 62%61%

57%

Artificial and machine

intelligence

Internet of Things

Financial technology and

currency

3D printing Augmented Reality/ Virtual

reality

Big data and analytics

Smart energy grids

Nanotechnology Driverless transport

Smart cities Electrification of the transport

system

Virtual healthcare diagnosis

How much “hype” are they are creating in your country today? (NET hype)

65% average hype

60

Page 61: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

The average hype of all innovations in Turkey is higher than the global average, with Smart Cities and Artificial Intelligence coming out on top.

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090. Base Business Executives in Turkey: 80

89% 88%85% 84% 83% 83%

81%79% 79%

74% 73%69%

Smart cities Artificial and machine

intelligence

Nanotechnology Augmented Reality/ Virtual

reality

3D printing Electrification of the transport

system

Financial technology and

currency

Smart energy grids

Driverless transport

Big data and analytics

Internet of Things

Virtual healthcare diagnosis

How much “hype” are they are creating in your country today? (NET hype)

80% average hype

61

Page 62: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

The transformative impact of macro innovation still generates excitement from business executives around the world.

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090. Q10. Next, please rate each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090

How much “hype” are they are creating in your country today? (NET hype)

How much impact and transformative change will they bring to your county? (NET impact)

71% 70% 69% 68% 67% 66% 65% 64%62% 62% 62%

57%

74%

71% 70% 69% 68%

71%

74%72%

68%

71% 72%

68%

Artificial and machine

intelligence

Internet of Things

Financial technology and

currency

3D printing Augmented Reality/ Virtual

reality

Big data and analytics

Smart energy grids

Nanotechnology Driverless transport

Smart cities Electrification of the transport

system

Virtual healthcare diagnosis

In particular, innovations such as AI, IoT and the development of Fintech, produce interest both in terms of hype (being talked about) and actually having impact on their industries and their economies.

62

Page 63: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Driverless transport and Nanotechnology see the greatest hype to impact discrepancy in Turkey.

Q9.When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives in Turkey: 80. Q10. Next, please rate each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives in Turkey: 80

How much “hype” are they creating in your country today? (NET hype)

How much impact and transformative change will they bring to your county? (NET impact)

89% 88%85% 84% 83% 83%

81%79% 79%

74% 73%69%

79%

71%

81%

69% 70% 69%65%

79%76%

63% 63% 64%

Smart cities Artificial and machine

intelligence

Nanotechnology Augmented Reality/ Virtual

reality

3D printing Electrification of the transport

system

Financial technology and

currency

Smart energy grids

Driverless transport

Big data and analytics

Internet of Things

Virtual healthcare diagnosis

63

Page 64: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

3D printing

Artificial and machine intelligence

Augmented Reality/ Virtual reality

Big data and analytics

Driverless transport

Electrification of the transport system Financial technology and

currencyInternet of ThingsNanotechnology

Smart cities

Smart energy grids

Virtual healthcare diagnosis

This being said, business executives report that transformation in transport, city-planning and infrastructure are “under-hyped” considering the benefits they could bring to their countries.

Less Hype, Stronger Impact

INN

OV

ATI

ON

IM

PAC

T

INNOVATION HYPE

Q9. When we talk about innovation “hype”, we mean hot topics or trends that are being widely discussed but aren’t necessarily having an impact yet. Out of the innovations listed below, please rate each based on how much “hype” they are creating in your country today. Base Business Executives: 2,090. Q10. Next, please rate each of these innovations in terms of how much impact and transformative change they will bring to your country. Base Business Executives: 2,090

Less Hype, Weaker Impact

More Hype, Stronger Impact

More Hype, Weaker Impact

64

Page 65: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / © 2017 65

section three:

Emerging Challenges

Page 66: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

Future of Work

66

Executive Summary• The workforce is considered the most crucial element to innovation success in most markets, yet skills gaps

continue to be a top concern among businesses. Nearly 3 in 4 (74%) global executives believe a lack of skills is an issue facing their industry—a challenge that has increased over time (64% say a lack of talent/inadequate skills is a key challenge today, up from 56% in 2014).

Page 67: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

67

5%

19%

43%

31%

Strongly disagree Somewhat disagree Somewhat agree Strongly agree

2018Q5B. How much do you agree or disagree with the following statements? There is currently a skills gap in my industry. Base business executives: 2,090, business executives in Turkey: 80

There is currently a skills gap in my industry

Level of agreement is consistent across sectors (74%)

10%

24%

43%

21%

64%

In Turkey, the skills gap is felt but not as strong as globally.

Page 68: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

68Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Base business executives 2014: 3,309, business executives 2016: 2,748, business executives 2018: 2,090

56%

60%

64%Do you consider the following a key

challenge restricting your business’s ability to innovate efficiently?

A lack of talent / inadequate skillset

2016

2018

2014

NET: A challenge

+8 ppt

This challenge only seems to be growing for business executives - finding the right talent and skillsets is apparently restricting business’s ability to innovate efficiently.

Page 69: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Turkey is not in line with the global trend and the lack of talent is not seen as a challenge compared to the global average.

69Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Base business executives in Turkey 2014: 100, business executives in Turkey 2016: 103, business executives Turkey 2018: 80

34%

49%

33%Do you consider the following a key

challenge restricting your business’s ability to innovate efficiently?

A lack of talent / inadequate skillset

2016

2018

2014

NET: A challenge

Page 70: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Edelman Intelligence / general electric

More Challenging Environment

70

Executive Summary• The challenges confronting innovative businesses are tough – and getting tougher – both externally and internally.

There is a 13-point increase (now 67%) since 2014 in lack of sufficient funding, a 6-point increase (now 65%) in the inability to scale innovations to a wider market, an 8-point increase (now 64%) in lack of adequate talent/ skillsets, and a 14-point increase (now 64%) in the inability of businesses to take risks. Emerging markets such as Poland, South Africa, Malaysia and Saudi Arabia are experiencing the greatest increase in challenges.

Page 71: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Businesses are struggling to scale up, investment is not available and it is a challenge to convert ideas into action.

71

67%

65% 64% 64% 64% 64% 64%

62%

60%

57%

The lack of sufficient investment and financial support

The incapacity to scale up successful

innovations, to a wider or

international market

A lack of talent / inadequate skillset

The difficulty to define an effective business model to support new ideas

and make them profitable

The incapacity of the business to take

risks

The increased pressure to conform to ‘innovation hype’ and trends around certain innovations

The difficulty to come up with

radical and disruptive ideas

The internal inertia and the incapacity to be nimble, failing

at rapidly converting ideas into actions

The lack of internal support from the

leadership team/top management

The overwhelming amount of

information

2018

Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2018: 2,090

Do you consider any of the following as key challenges restricting your business’s ability to innovate efficiently?NET: Top 2 / A Challenge

Page 72: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

In Turkey, lack of sufficient investment and incapacity of the business to take risks are the top two challenges, yet under-index against the global average.

72

48% 48% 46%41% 41%

39%34% 33% 31%

23%

The lack of sufficient investment and financial support

The incapacity of the business to take

risks

The lack of internal support from the

leadership team/top management

The internal inertia and the incapacity to be nimble, failing at rapidly converting ideas into actions

The difficulty to come up with radical and disruptive ideas

The incapacity to scale up successful innovations, to a

wider or international market

The increased pressure to conform to ‘innovation hype’ and trends around certain innovations

A lack of talent / inadequate skillset

The difficulty to define an effective business model to support new ideas

and make them profitable

The overwhelming amount of information

2018

Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives in Turkey 2018: 80

Do you consider any of the following as key challenges restricting your business’s ability to innovate efficiently?NET: Top 2 / A Challenge

Page 73: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

And these key issues have become even bigger challenges than they were four years ago.

73Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives 2014: 3,309, business executives 2018: 2,090

Do you consider any of the following as key challenges restricting your business’s ability to innovate efficiently?NET: Top 2 / A Challenge

50%54%

59%56%

59%

64%67%

65%62%

64%

The incapacity of the business to take risks

The lack of sufficient investment and financial support

The incapacity to scale up successful innovations, to a wider

or international market

The internal inertia and the incapacity to be nimble, failing at

rapidly converting ideas into actions

The difficulty to define an effective business model to support new ideas and make them profitable

2014 2018

+14 +13 +6 +6 +5

Page 74: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

52%47% 45% 45%

41%

48% 48%

39%41%

31%

The incapacity of the business to take risks

The lack of sufficient investment and financial support

The incapacity to scale up successful innovations, to a wider

or international market

The internal inertia and the incapacity to be nimble, failing at

rapidly converting ideas into actions

The difficulty to define an effective business model to support new ideas and make them profitable

2014 2018

This is not a trend that is observed in Turkey, with Turkish business executives seeing a decline in key challenges.

74Q25.Do you consider any of the following as key challenges to be restricting your business’s ability to innovate efficiently? Not a challenge at all (1), not a real challenge (2), a bit of a challenge (3), a critical challenge (4) Base business executives in 2014: 3,309, business executives in Turkey 2018: 80

Do you consider any of the following as key challenges restricting your business’s ability to innovate efficiently?NET: Top 2 / A Challenge

-4 +1 -6 -4

-10

Page 75: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Thank you

75

Page 76: February 2018 GE Global Innovation Barometer …...The Potential of Additive: Global executives are excited about the potential of 3D printing, saying it will have a positive impact

Historical data has been used from 2013, 2014, 2016 and this year’s 2018 data.

The only question that is comparable across all four years is Q1 - Innovation Champions.• To compare scoring from previous years we have reweighted the previous total scores, so that countries that

are not included in this year’s GE GIB are removed, so only including the 20 countries that we have this year. This ensures all data is directly comparable. • The UK was not included in GE GIB 2016 so an average score from 2018 data and from 2014 was created at act as a

proxy. • In 2013 France was not included so a proxy from looking at 2014 and 2016 data has been used. • In 2016 Nigeria was not included so an average score from 2018 data and from 2014 was created to act as a proxy.

This method (of reweighting the total scores and creating proxies) has been used consistently across all questions where we have compared historical data.

Where tracking questions have been used for only 2016 and 2018 (because these questions were not tracked in 2013 or 2014), data for these questions is based on a 19 market total only as no proxy could be created for the UK in 2016.

Historical data tracking

76


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